Risk Management: Understanding”Active Risk Management” for your Stock Market Portfolio
I’m Steve Shyman, at Wilsave, we are Specialists in Safer Money Strategies
Over the last 20 years, many of us lost up to 50% of our portfolios twice.
To avoid this happening yet again,
We advise employing the “Rule of 100” as a good guideline to determine how much of your money should be safe and how much at risk based on your age.
Here is how that works:
100 – Your Age = Approximate % of your portfolio should be at risk.
Your Age is the approximate % of your portfolio that should be safe
Safe money should be
insured and protected against any market loss,
yet be capable of earning a reasonable rate of return so it can keep up with or out pace inflation.
As you get older, the rule tells us that a larger % of your portfolio should be safe and protected.
To fully understand safe money, you may want to attend one of our safe money seminars. Reach out to us if you would like to attend one.
Let’s now discuss how the risk part of your portfolio can be safer and how new methods called “Active Risk Management” might be right for you.
For the % of our money that is at risk in the stock market whether it be in stocks, bonds or mutual funds, etc……
We use modern methods to help make that money safer by limiting that risk money from large losses in market corrections.
For the % of our money that is at risk, most of us would love a portfolio that would help us stay invested yet not lose a lot the next time the market corrects.
We don’t want to repeat the past, but most of us are not aware of a viable solution.
At Wilsave, we have a viable solution.
The solution is for our risk money, in stocks, bonds and mutual funds, etc., having a “Rules Based” plan in place that automatically makes moves based on market conditions.
This takes emotion out of our decisions and makes our risk money safer.
Having this kind of plan in place can help us achieve our long term investment goals with less stress, but with more confidence and comfort.
Today, for our risk money, we employ tools and technologies that can allow us to:
be in the market,
enjoy the liquidity and upside of our stock market accounts
help us limit losses in bear markets
even make money in both up and down markets.
Best of all, this kind of active management is all done for you, constantly monitoring and adjusting your portfolio as needed.
The goal is to for the % of our money we keep at risk:
To be in the market and capture gains,
BUT WITH LESS RISK.
Not to get confused and nervous as markets fall so we can avoid making emotional decisions
Be positioned to profit as markets recover
Have a plan in place to maximize our investments over full market cycles which means from market highs, to market lows and back up again.
It may be time for you to explore the new options that use modern tools and technologies to help you limit large losses and move forward.
Best of all, you don’t have to do this, watch it or make the moves, it can all be done for you.
Some people think, I like the market and I’ll just hold tight and get out when the tide turns. That is a risky way to think.
That didn’t work in 2000 or in 2008 and it won’t work next time either.
We believe that BEFORE Bull markets turn bad, we need to be prepared.
We help our clients do just that, using guaranteed products that can achieve reasonable rates of return for safe money,
And using modern tools and technology to help make the risk money less vulnerable to large losses.
The market is more volatile than ever.
One look at this graph of the S&P
Illustrates the volatile world we live in.
Notice the smooth uptrend from 1980
and the wild swings since 2000.
This volatility, called by some experts as
“the new normal” is likely to continue
THESE SWINGS CAN BE HAZORDOUS TO YOUR WEALTH!
The landscape has changed over the last 40 years. To keep up and do well, you must be able to adapt your investment style to what is going on today.
To see how we can help you protect your money and limit your losses
Please contact us at 312-796-7400, send me an email at firstname.lastname@example.org, or fill out the meeting request form at www.wilsave.com
There is no charge for our no obligation consultation.